Senior Democrats say they will back a plan worth $780bn
(£534bn), instead of the $900bn sought by the president, in order
to gain vital Republican support.
President Barack Obama has become angry with delays to the bill,
which mixes big spending plans and tax cuts.
The Senate is now due to hold a vote in the coming days. <!--
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President Obama has spoken of "an urgent and growing crisis" and
said further Senate delays would be "inexcusable and irresponsible"
and lead to "a catastrophe".
His comments came as the latest unemployment figures showed that
the US had had its single worst month for job
losses for 35 years.
Almost 600,000 people lost
their jobs in January alone - figures Mr Obama
described as devastating.
The new $780bn plan is composed of 42% tax cuts and 58% new
government spending, Democratic Senator John Kerry said, according
to Reuters news agency.
Other details of the slimmed-down package are sketchy, but one
Democrat told Reuters that the homebuyer tax credit and car tax
credit were still in the bill.
The Democrats need to persuade two Republicans to vote in favour
of the bill for it to gain the necessary 60 Senate votes.
Although Democrats hold a 58-41 majority, 60 votes are required
to ensure the Republicans cannot block the bill with a
filibuster.
Senate Finance Committee Chairman Max Baucus said that at least
three or four Republicans would vote for the bill.
"The American people want us to work together," said Senator
Susan Collins, a Republican who will vote in favour.
"They don't want to see us dividing along partisan lines on the
most serious crisis confronting our country."
However, the Senate minority leader, Republican Senator Mitch
McConnell, said that "most of us are deeply sceptical that this
will work".
And his Republican colleague, John McCain, defeated by Mr Obama
in last year's presidential election said: "You can call it a lot
of things but bipartisan isn't one of them."
Mr Obama described as "devastating" the news that nearly 600,000
Americans lost their jobs in January.
"The situation could not be more serious. These numbers demand
action," he said.
Mr Obama's remarks came as he unveiled a new board of economic
advisers, chaired by Paul Volcker, former chairman of the Federal
Reserve.
"I created this board to enlist voices that come from beyond the
echo chamber of Washington DC," said Mr Obama, "and to ensure that
no stone is unturned as we work to put people back to work and to
get our economy moving."
About one-third of the bill is currently composed of tax relief,
with the rest devoted to spending on infrastructure projects, like
roads and bridges, new schools and alternative energy
programmes.
http://news.bbc.co.uk/2/hi/americas/7876139.stm